Not a subscriber ?  Start your complimentary Premium trial now

News

JB Hi-Fi's profit, dividend beats forecast

Nicholas Grove  |  15 Aug 2016Text size  Decrease  Increase  |  

Page 1 of 1

JB Hi-Fi records an 11.5 per cent lift in full-year profit and earnings per share, on the back of an 8.3 per cent rise in total sales and a 5.4 per cent rise in comps.

 

Retailer JB Hi-Fi Limited (ASX: JBH) on Monday announced a fiscal 2016 net profit of $152.2 million and earnings per share (EPS) of 153.8 cents a share, up 11.5 per cent on the previous year and ahead of Morningstar's expectations for a profit of $145 million and EPS of 144.9 cents a share.

The result was achieved on the back of an 8.3 per cent rise in total sales to $3.95 billion, as well as comparable-store sales growth of 5.4 per cent.

Earnings before interest and tax (EBIT) rose 10.1 per cent to $221.2 million, the retailer said in a statement to the ASX.

"We had a great finish to the financial year and are proud to deliver both net profit and earnings per share up 11.5 per cent," JB Hi-Fi CEO Richard Murray said.

"Particularly pleasing was how we cycled a strong June in the prior year, with good sales driven by tax-time buying."

JB Hi-Fi declared a final dividend of 37 cents a share fully franked, bringing the total dividend for fiscal 2016 to 100 cents a share, up 10 cents on the prior year and ahead of Morningstar's forecast for a payment of 94.2 cents.

The final dividend will be paid on 9 September 2016 to shareholders on record as of 26 August 2016.

JB Hi-Fi also said it will continue with its on-market buyback program in fiscal 2017 with the buyback of a maximum of 0.4 million ordinary shares.

Looking to the remainder of fiscal 2017, Murray said the company is targeting total sales to be in the region of $4.25 billion.

"We continue to invest in our store network, online offering and solutions business. These initiatives, coupled with a strong promotional plan, will position us well for growth in fiscal 2017," he said.

More from Morningstar

• Aurizon profits down as cost-cutting continues

• NAB's 3Q cash profit falls as funding costs, bad debts rise

 

Nicholas Grove is a Morningstar journalist.

© 2016 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written content of Morningstar. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). The article is current as at date of publication.

Uncover winning investment ideas and strengthen your portfolio with a 4-week free trial to Premium:

  • Your Money Weekly Newsletter
  • Independent Fund Analyst Research
  • Portfolio X-Ray
  • Investment Picks
* only available to new subscribers